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Pakistan equities rise as institutions step in

Pakistani stocks closed slightly higher on Tuesday as institutions stepped in after the main index fell more than three per cent as political and economic uncertainty unnerved investors, dealers said.

  • Reuters
  • Published: 23:53 June 17, 2008
  • Gulf News

Karachi: Pakistani stocks closed slightly higher on Tuesday as institutions stepped in after the main index fell more than three per cent as political and economic uncertainty unnerved investors, dealers said.

The Karachi Stock Exchange benchmark 100-share index ended 0.43 per cent, or 53.73 points, higher at 12497.86. Volume was 104.26 million shares traded with losers slightly beating gainers 140 to 131.

"With valuations so compelling it was but a matter of time before institutional investors were to step up and clearly that was reflected in today's action," said Asad Iqbal of Ismail Iqbal Securities.

Dealers said the early fall was because foreign investors sold amid both political and economic uncertainty.

A new government that emerged from February elections has been preoccupied with the question of restoring judges President Pervez Musharraf fired last year, and the related question of Musharraf's fate as president.

Investors have long fav-oured Musharraf for pro-growth policies under the previous government that saw stocks surge.

Concerns

Some foreign investors were concerned about a threat by Afghan President Hamid Karzai on Sunday to go after Taliban militants taking refuge in Pakistan, dealers said.

The government's budget for the financial year beginning on July 1, announced last week, had little impact on sentiment and investors concerned about the economic outlook remained on the sidelines, dealers said.

The banking sector came under pressure on Monday after a newspaper report the previous day saying government agencies planned to withdraw their deposits from the banking sector.

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